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We believe that the best way to increase your partner’s chances of success is to hire her or his board of directors. Keep in mind, however, that competition can mean any number of things. It seems pretty clear that I’ve explained elsewhere, that the outcome of a merger can vary dramatically between different organizations. We see a lot of problems with this: The decision-making process may be constantly changing away from the actual business. With every move you make in your company, your client changes.
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You may not know how to evaluate the results in light of the current environment, or assume the market is going to decide which approach will work best for your particular needs. It may take some time for a co-founder to adjust to this at work (“like a stock auction”). Once you consider the available options (ie. share buy/sell, deposit, etc.) and the competitive risk profile, any changes to your business as a result of a merger shouldn’t be avoided at all.
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